Life Insurance Product confusion

J

janubaba

Guest
hi ,I have a dual life insurance policy (level term) for 30 years with Irish life

Life Cover: 230,000
Special illness: 150,000

Premium 148 Euro PM

Now another company Acorn life(whole of life) is offering me a product at a lower price with more cover

Life Cover: 380,000
Special Illness: 150,000

Premium 97 Euro PM

But the broker for Irish life is saying that Acorn policy is inferior to Irish Life

because Acorn can increase the premium unto 6% every year and if there investement fund doesn't perform they might increase the premium even more.
And he is saying that he can get me in writing that Irish Life premium will stay the same for the whole term.

I don't know what to do....

Can any body suggest anything i should consider before deciding

Any questions should i need to ask?

Thanks
janu
 
It depends on how much risk you want to take on.

Your current cover has no risk - if you die before the term and have paid the fixed premiums up to this date of death you (or rather the beneficiary) will receive € 230,000.

The Acorn Life will pay out more, but the premuims are not fixed - they can (and probably will) be increased over the term of the policy - so are you prepared to pay the increased premiums over the life of the policy.

It's a gamble in either case - if you die, they pay out - if you don't, they don't.

So, the question is do you prefer the fixed price or are you willing to take the risk that the increase in premiums will still come in lower over th elife of the policy?

I suspect that insurance companies are much better at calculating the odds than you are. In the case of the fixed premiums, thay are set at a level to ensure that the company will make money in all cases, whereas in the variable premium, that have the option to increase the rate to ensure that they will make money.

Also, check that the range of illnesses covered are the same in each case.
 
OP, you might be best to read very carefully the Policy. Most Life assurance Policies cover eventualities such as poor investment performance. Personally I do not believe that Irish Life would leave this clause from a Policy in entire.

If this is a fairly new Policy the broker will do his level best to atop you changing or else his commission will be withdrawn. In your case this would be approx 95% of the first years premium.

Now that the matter has arisen, why not try and get some more quotes to compare.
 
Hi,
I have a Caledonian Life policy which I pay premium of 900 per year for cover of €500k on my life for 20 year period since 2006.Is it ok to change to Irish Life similar product as broker suggests to me and recieve 300 euro from his commission payment.Want to be sure I am not making a mistake as long as cover and payout remain unchanged.
 
Personally, I fail to understand as to why persons undertake Term Assurance and after the period it dissapears. Would you not be better changing the existing Policy to whole of Life -- not just a fixed period. Your broker wants to hand you back his commission. Where is the catch. What is his theory as I have never heard of any broker offering something for free.
 
Not sure if there is a catch.I persume Irish Life treat it as new business and pay him commission so better to split it than get none at all as far as he is concerned.
 
karly said:
Hi,
I have a Caledonian Life policy which I pay premium of 900 per year for cover of €500k on my life for 20 year period since 2006.Is it ok to change to Irish Life similar product as broker suggests to me and recieve 300 euro from his commission payment.Want to be sure I am not making a mistake as long as cover and payout remain unchanged.
Click to expand...

What is the annual premium with Caledonian at the moment?
What will the annual premium with Irish Life be?
 
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